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Biotech / Medical : NNVC - NanoViricides, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: KMBJN. who wrote (12508)	12/6/2019 1:05:21 PM
From: HardToFind	Read Replies (1) \| Respond to of 12873

It's looking unlikely unless NNVC can raise some more funds. NNVC seems closer than ever, and it would be a shame for the $ to run out before the promising nanoviricide concept ever got tested in humans. Selfishly speaking, I've written my investment (speculation) in the company off. In order for Diwan to get the money to continue, I will be diluted into oblivion or the company will be sent into bankruptcy and fall into Diwan's hands. I know it's gone, and not coming back. Any new investor is not going to be looking out for poor little me (or "us", if you will). So...it's gone. So...first I would like to see the Diwan go to prison, or alternatively... I would like to see Diwan be forced to renegotiate a reasonable licensing deal with the current common shareholders and/or combine TheraCour with NNVC and publicly acknowledge that the $100 Mn that Diwan pissed away on the shareholders' behalf was more crucial to the success of this company than Diwan's ideas, which were inextricably coupled with his moral bankruptcy and managerial incompetence, and which have required 14 years to start to approach an IND clearance for the first time. But in truth, in what universe is that level of justice available? None exists today in my opinion. But, yes, I would like to see the drugs succeed...ideally, without Diwan's fraud succeeding.

To: KMBJN. who wrote (12508)	12/11/2019 8:14:16 PM
From: RoadyHD	Read Replies (1) \| Respond to of 12873

I share the concerns about NNVC's corporate governance, affiliate licensing, and conflict of interest. I think it's also made it more difficult for Dr Diwan to attract adequate funding for the company now. He's raised over $100M to date, but that impressively large amount is actually average for a 15 year old biotech. What isn't average is that it's been 15 years and not one drug has gone through a human clinical trial yet. So given the TheraCour stuff, the $100MM already spent, and just 15 years of (good) lab work (and an underutilized facility) as a result, no doubt there's financier fatigue and DD is now really struggling to raise the funds to get through one more year and complete a VZV Phase 1. He only raised $2.5MM last round, just 10 months ago when the share price was much higher. The underwriter and potential investors apparently balked at the Sept 27 recent approx $18MM first offering, so it was withdrawn. The second S-1 on Nov 29 is smaller at approx $11.5MM with a new underwriter and at current market prices the net proceeds are likely to in fact only be about $4MM. That's not going enough to get through the VZV Phase 1. So this is a biotech with some absolutely amazing pharmaceutical technology that works great in the lab, should theoretically work great in humans, would have tremendous medical and commercial potential if it did, has had $100MM invested in it, has taken 15 years to get to filing an IND for just one indication, has run out of money and willing backers, has an equity market cap collapsed on the floor, needs at least another $100MM for development and operations over the next 4 years (if things work), and a successful Phase 1 is not necessarily gonna be the catalyst for that and the next capital raise isn't enough to get to Phase 1 anyway. What is needed right now is about $30MM in a new equity commitment: 2 to get us through VZV's IND + 8 to get us through Phase 1 +20 to get us through a Phase 2 =30 total DD's $2MM can't be counted because that's debt and must be payed back - in a year. It's just bridge financing. And while we can mortgage the factory building, it's only worth maybe $5MM in collateral (book carrying value is irrelevant). So the current S-1 is already obsolete and inadequate. We can't count on a Phase 1 being the catalyst for a massive license deal. The company has no such commitments from a BP. It's nice to fantasize about but foolish. We'd be financing our Phase 2 ourselves almost assuredly. If I were a biotech equity financier, I'd be making DD convert his $2MM loan into equity and telling them I'll then give you $8MM now and $20MM "if/when" you get successful Phase 1 results. This is a milestone clause commitment of equity. All of the above means likely somewhere between 10 million to 30 million additional shares, all depending on the NNVC share price, and hence the market's view of HHV-101's prospects. (Because you've temporarily removed near term funding risk from the valuation.) BTW even if we get a partner after a good Phase 2, which would be 2022 at earliest, we still need more capital by then. That's why the company tried to get shareholder approval on 150 million share authorization. I think 150 million shares is absurdly large, but if our share price keeps collapsing to pre-split, it won't be. And that's mostly why the company did that. From the lack of mention in DD's PR, the authorization motion apparently failed. Rightly so. Should have asked for 30 million, not 150. You can always go back, when things are going well, and ask for an increase if you need it. DD scared everyone with that foolish 150 million request. Anyway, great medical potential, lousy finances in a tight biotech capital market, and a lop-sided affiliate relationship that makes everyone leary of NNVC's actual economic value. With a proper $30MM equity line commitment, the share price would likely stabilize, above this $2 joke ($8MM diluted market cap). But DD couldn't even get $18MM underwritten. So NNVC's funding uncertainty is going to drag on. That will cost shareholders in sharecount.